Partners A, B, C, and D have been operating ABCD Partnership for ten years. Due to a significant reduction in the demand for their product over recent years, the partners have agreed to liquidate the partnership. At the time of liquidation, balance sheet accounts consisted of cash, P103,500; noncash assets, P300,000; liabilities to outsiders, P60,000; capital credit balances for partners A, B, and C, P90,000, P150,000, and P120,000, respectively; and a debit capital balance for partner D of P16,500. Partners share equally in income and loss. It is estimated that the administrative cost of liquidation will total P4,500. While preparing for liquidation, an unrecorded liability of P7,500 was discovered. Required: For how much must the noncash assets be sold for partner D to received at least P5,000?
Partners A, B, C, and D have been operating ABCD Partnership for ten years. Due to a significant reduction in the demand for their product over recent years, the partners have agreed to liquidate the partnership. At the time of liquidation, balance sheet accounts consisted of cash, P103,500; noncash assets, P300,000; liabilities to outsiders, P60,000; capital credit balances for partners A, B, and C, P90,000, P150,000, and P120,000, respectively; and a debit capital balance for partner D of P16,500. Partners share equally in income and loss. It is estimated that the administrative cost of liquidation will total P4,500. While preparing for liquidation, an unrecorded liability of P7,500 was discovered. Required: For how much must the noncash assets be sold for partner D to received at least P5,000?
Chapter21: Partnerships
Section: Chapter Questions
Problem 11BCRQ
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Transcribed Image Text:Partners A, B, C, and D have been operating ABCD Partnership for
ten years. Due to a significant reduction in the demand for their
product over recent years, the partners have agreed to liquidate the
partnership. At the time of liquidation, balance sheet accounts
consisted of cash, P103,500; noncash assets, P300,000; liabilities to
outsiders, P60,000; capital credit balances for partners A, B, and C,
P90,000, P150,000, and P120,000, respectively; and a debit capital
balance for partner D of P16,500. Partners share equally in income
and loss. It is estimated that the administrative cost of liquidation will
total P4,500. While preparing for liquidation, an unrecorded liability
of P7,500 was discovered.
Required: For how much must the noncash assets be sold for partner
D to received at least P5,000?
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